How often is the call fee subject to adjustment by Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
e a dedicated telephone number for your Hotel to connect to the Services. Callers to this telephone number will be able to select a number for new reservation inquires. All new reservation inquiry calls will be directed to our Call Center. We will maintain ownership
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the $4.00 call center fee is subject to adjustment, but no more than once per year. This adjustment is referred to as a 'Fee Adjustment'.
The 'Fee Adjustment' is defined as an increase at Sonesta Select Sonesta Essential's discretion, up to the greater of two options: either (i) 5% annually (or 10% for TMC and Consortia Fees and Operations Insights Fees), on a compounding basis regardless of whether Sonesta Select Sonesta Essential exercises such adjustment in any calendar year, or (ii) the difference, expressed as a percentage, in the CPI (Consumer Price Index). The CPI is determined by comparing the CPI in effect as of the Effective Date to the CPI in effect as of the date of the Fee Adjustment, without reference to any prior Fee Adjustment.
This means that as a franchisee, you should anticipate potential annual increases to the call center fee. The actual adjustment will depend on Sonesta Select Sonesta Essential's decision, considering both a fixed percentage increase and the change in the Consumer Price Index. The compounding aspect of the 5% (or 10%) increase means that even if Sonesta Select Sonesta Essential doesn't raise the fee in a given year, the potential for future increases still grows. Franchisees should factor in these potential fee adjustments when forecasting expenses and profitability.